The franchise industry is all abuzz, and the talk is about
technology-for good reason. Technology is paving the way to the
future, leaving a need for entrepreneurs who can help lessen the
impact of today's rapidly widening digital divide. Stepping up
to bat are technology consulting, service and training franchises
offering a broad range of services, such as hardware repair,
networking, software/security consulting and website development.
We talked to some of the franchise players about what factors are
causing this demand, how the digital divide is shaking things up
and why the time is ideal for franchisees in particular to enter
the scene.

Tech Addicts

People are becoming increasingly dependent on technology, using
computers for a range of activities from shopping online to finding
love. A 2004 survey conducted by the Stanford Institute for the
Quantitative Study of Society determined that the average U.S.
internet user spends three hours a day online. The internet has
actually caused a decrease in the amount of time these users spend
watching TV and doing other activities. The study also confirmed
that Americans are more connected than ever, with as much as 75
percent of the U.S. population having access to the internet either
at home or at work.

Chip Reaves, 35, national director of Decatur, Georgia-based
Computer Troubleshooters USA, a computer services and support
franchise, has noticed that residential users have become a higher
percentage of the franchise's customers in the past two years.
"More home users are willing to pay to have us come out and
work on their computers," he says. "People are becoming
so dependent on e-mail and [the internet], with kids using it for
homework and parents balancing the checkbook on it."

Businesses have also discovered an online presence is necessary
for brand awareness and company sales. A 2004 survey by market
research firm Harris Interactive estimated that 70 percent of U.S.
small businesses have an online presence, a sharp increase from the
SBA's 2002 figure of 35 percent. "Technology not only
helps you run your business more effectively-sometimes it's the
only way you can do it," says Camille Hamilton, 44, who has
been a franchisee of on-site computer training and support
franchise CM IT Solutions, based in Austin, Texas, for nearly four
years. "When companies don't have internet access, that
can impact their bottom line."

Bug Control

Long gone are the days when viruses only affected humans, and
the words spyware and spam were not a part of our everyday
vocabulary. A 2004 survey conducted by America Online and the
National Cyber Security Alliance, a public-private partnership
focused on promoting cyber security and safe behavior online,
revealed that 80 percent of the users surveyed had spyware or
adware programs on their computers. And this estimate is
conservative-some surveys report numbers as high as 90 percent.
These elements have forced computer users to face the sobering fact
that, while computers can be helpful, they come with their fair
share of problems-which often require professional assistance. Says
Hamilton, "Technology is becoming something the brother-in-law
can't come in and fix on the weekends."

Naturally, the misfortune of some has become the fortune of
others; and largely due to the onslaught of such problems,
technology consulting franchises grew by nearly 50 percent in 2004.
Franchises like CM IT Solutions, Computer Troubleshooters USA and
Expetec Corp. are eager to come to the aid of frustrated computer
users. "It's not getting easier for people to dig these
worms out," says Lonnie Helgerson, 42, co-founder of Expetec
in Aberdeen, South Dakota. "As we compete on what you'd
call an electronic scale with the internet, that's going to
become a cost of business."

As a result, businesses are increasingly turning to
tech-oriented companies for solutions to their computer needs.
Helgerson notes that the biggest growth in clients in 2004 came
from small and midsize businesses, as businesses realized it's
cheaper to contract with a tech company than hire a full-time
computer technician.

Meanwhile, Reaves of Computer Troubleshooters USA believes that
customers tend to have more confidence in calling a franchise for
assistance than an independent consultant. Says Reaves,
"Working through a franchise structure, the customer gets a
lot of peace of mind that [he or she is] dealing with a credible
organization, not just a fly-by-night operation."

Bridging the Divide

One of the main factors spurring growth in certain tech-related
franchises is the threat of an ever-widening digital divide between
the computer literate and illiterate. With the threat of this
growing gap, the spotlight is being directed toward educating
youth, thereby bringing together two rapidly growing forces:
technology and children. And as the forces meet, opportunities
abound for franchises like Computertots/Computer Explorers, which
specializes in offering technology education for schools, kids and
adults. "There have always been four core subjects in
education: social studies, science, math and language arts,"
says Art Coley, CEO of Cypress, Texas-based CTCE. "Now
there's a fifth subject-and that's technology. Technology
touches our lives every day."

For the past 20 years, CTCE has largely focused on serving
children ages 3 to 12 in the private sector, including
independently owned and chain preschools, child-care centers and
private schools. Now, says Coley, the doors to the public school
system are opening thanks to two factors: the No Child Left Behind
Act, which prioritizes both technological fluency and use of
technology to facilitate learning in the elementary school
classroom, and the fact that computer skills are quickly becoming a
requirement in today's job market. "When we look ahead 20
to 50 years, the difference between people around the world and in
our country won't have anything to do with their age, sex,
color, religion or gender," says Coley. "It's going
to have everything to do with technology-how we understand it and
use it."

Technological fluency has become crucial for living in
today's society, and it will only continue to grow more
prominent. CTCE is pairing up with KinderCare, a leading provider
of child care and education, to become the technology provider at
the more than 1,200 KinderCare centers across the country. To
accommodate the demand coming from all sides, CTCE plans to add a
minimum of 50 to 100 franchises annually. Currently at about 100
franchises, Coley says the company doesn't plan to stop
expanding until it reaches 500. "There are four-and-a-half
million preschoolers and 50 million children in [kindergarten
through eighth grade] across the country," says Coley.
"Considering [that] today we serve about 30,000 children,
there's plenty of room for growth."

Getting In on the Action

Becoming a tech franchisee might be appealing, but can also be
intimidating due to the fast pace of the industry. However, there
are a few key facts that might ease your qualms.

First of all, franchisees can set up shop right from their
homes, since most of the services offered by these tech franchises
require franchisees to go directly to their customers, not vice
versa. CTCE's franchises are all homebased, and Reaves of
Computer Troubleshooters USA estimates that 90 percent of his
company's franchises are run from home. Reaves says potential
franchisees like the homebased option since it helps keep startup
costs low.

For Hamilton, being homebased was a definite selling point when
she was considering purchasing her CM IT Solutions franchise; in
fact, she was even more attracted to the franchise from a lifestyle
perspective than a financial standpoint. Before getting laid off,
Hamilton had been able to work from home for her previous job and
had grown attached to the lifestyle it allowed her to have. "I
had been working from home for 18 months," says Hamilton.
"The whole idea of going back to the corporate grind was
really nauseating for me." More than four years later,
Hamilton is still working from home and loves it. However, she
cautions people who are thinking of doing the same to examine
whether they have the space to be able to live and work out of the
same place as well as the discipline to clearly separate work time
from personal time.

Secondly, contrary to what you might think, being tech-savvy is
not necessary for becoming a tech franchisee. More important than
personal expertise is finding dependable and knowledgeable
employees who are capable of handling service calls. Though
Hamilton is a tech whiz herself, having worked for 20 years in
corporate IT organizations, she largely depends on her team of five
part-time employees to tend to her customers' needs and stay
up-to-date with all the technological developments. By building a
skilled team, Hamilton has also been able to build her sales to a
projected $200,000 for 2005, experiencing nearly 100 percent growth
year after year.

Finally, the structure and support of a franchise system can
greatly assist potential franchisees who fear the consequences of
striking out on their own in such a rapidly changing environment. A
franchise system is crucial for helping tech franchisees stay
current. CTCE has a team of people regularly updating its
curriculum and developing new materials as emerging technology is
introduced-including robotics, digital cameras and microscopes.
Expetec and other franchisors use online forums to keep franchisees
up to speed with developments.

Times Are A-Changin'

In this era where spam fills our inboxes and new viruses are
capable of instantly wiping out a wealth of valuable information,
staying abreast of technology has become crucial for computer users
of all kinds. Technology can open the door to success for a
business, but being ignorant of the dangers and being unprepared to
deal with problems can shut the door just as quickly. Franchises
offering tech consulting, services and training are growing
rapidly, offering more opportunities than ever. And franchisees of
those businesses will find that the skills they possess and the
solutions they provide can be as valuable as gold.

On Your Mark, Get Tech, Go!

Pumped up about starting your own tech business? Begin your
research here with the following franchises: